Bonus for pawn trade

SMALL firms struggling to get bank loans are increasingly turning to pawnbroker Albemarle & Bond, the company said yesterday.

PUBLISHED: 09:56, Wed, Feb 13, 2013

There has been a rise in those who need immediate cash

Chief executive Barry Stevenson said a growing number of "one or two-man bands" such as painters and decorators were using pawnbroking to ease cashflow problems because banks were less receptive to their needs.

"We are very popular with the self-employed. If you have a problem with your van or are waiting to be paid for a day's work it can take too long to get a bank loan. We are seeing more smallbusiness owners come in to our stores and pawning smartphones, watches and tablet computers," he said.

We are seeing more smallbusiness owners come in to our stores and pawning smartphones, watches and tablet computers

Stevenson said smallbusiness owners were among the 10million Britons who either had no savings, were overdrawn or who had reached their credit card limits and needed immediate cash. They had helped first-half pawnbroking profits rise 2.3 per cent to £17.6million.

However overall group profits dropped a third to £8.1million as demand for its gold buying service declined.

Stevenson said its customers were running out of unwanted and damaged gold jewellery to sell.